
Please be cautious. Even though the minimum capital requirement for high volume trading accounts has been lowered from $25,000 to $2,000, frequent trading can still violate the Wash Sale Rule. Disallowed losses from wash sale violations create taxable income that you really didn’t make. If you are taking advantage of the new opportunity to trade with less capital, please be extra careful that you don’t end up with a big tax bill. Talk to an expert to help you navigate the tax laws that affect day traders most.
